Business Financing In Canada : Quietly Explaining Those Loans & Growth Finance & Funding Options You Can & Can’t Have!

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Does Your Company Want To Borrow Just Like An American ? You Can’t, and Here’s Why !

OVERVIEW – Information on business financing options in Canada. While U.S. borrowing options might be more plentiful there are a variety of loans available for funding and growth finance for companies in the SME COMMERCIAL FINANCE sector

Business Financing in Canada
can't be compared to U.S. borrowing options. That’s a good and bad thing as we'll soon explain, as it relates to the right loans and funding you need to achieve growth finance goals. Let's dig in.

Surveys tell us that many Canadian business owners and financial mgrs actually feel strongly that lack of financing in Canada is in fact a 'barrier to growth’. We're talking primarily about 'debt financing ' via loans as well as closely related ' asset monetization ' via credit lines, etc.

Many Canadian businesses start with owner equity and the proverbial ' friends and family ' type financing - that's not really debt finance of course. A large part of the equity in Canadian SME firms lies in the shareholder loan category!

In the U.S. there is clearly a lot more ' risk ' financing with a wider variety of lenders , leading of course to the perception or reality that the Canadian lending landscape doesn’t offer as much funding that is priced to risk, and therefore more available !

Given that many Canadian lenders are also ' deposit takers ' they of course are more risk averse - EXAMPLE: Canadian banks and insurance company lenders. While the Canadian lending landscape was in the past very limited to bank financing new alternative lenders are providing more financing choices - similar to the variety of loans and lenders available in the U.S.

The traditional financiers in Canada are:

Banks

Business Oriented Credit Unions

Insurance companies

Leasing Companies

Mortgage Institutions

Traditional financiers in Canada use the same approach for almost all borrowers, which of course has a tendency to restrict financing. In Canada companies seeking SME COMMERCIAL FINANCE (small to medium sized firms) constantly are challenged to finance sales and assets. Access to business credit lines is always a challenge - Asset based lines of credit in Canada have exploded in popularity.

Canada set up its own version of the U.S. ‘SBA ' program. In Canada we call it the 'SBL ' - It's a govt guaranteed loan with the federal govt guaranteeing 85 % of your loan to the bank. In Canada the program only finances equipment, leaseholds and real estate. In the U.S. numerous other options are available under the same program.

What then should Canadian business owners consider when it comes to real world financing options available to their business? The offerings for owner/financial mgr consideration include:

A/R Financing

Non Bank Asset Based lines of credit

Equipment financing

Sale leasebacks

Bridge Loans - asset based

Tax Credit Financing (film and SR&ED)

Franchise Loans

Govt Guaranteed Loans

Working capital term loans

Merchant advances

If you want to borrow with a full understanding of your business finance options seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success who can assist you with loans, funding and growth finance options specifically for your company.



Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


'

Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Business Credit Line Need? Asset Based Lending Via ABL Revolving Facilities

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A Generic Business Credit Line ! That’s Really What A Non Bank ABL Solution Is.. Really!

OVERVIEW – Information on asset based lending in Canada. Companies can achieve the business credit line they require through ABL finance - Here's why and how !

Asset based lending in Canada is the closest thing to a ' generic ' business credit line facility in Canada. So why do we describe to clients ' ABL ' solutions in that manner? The answer is simply that it's a one size fits all solution to working capital and cash flow needs. It's generic in that it's always, and we mean ' always ' about your business assets. Let's dig in.

The proof in the pudding about ' ABL ' is that top experts in finance tell us that asset based lending gains in traction every day - and again, generic if only for the reason that start up, small and medium sized and large firms all can use this facility .

If ABL credit lines are that generic how then does the business owner and financial manager find the right facility for his firm, and who does he or she find it from ? Here it's all about what we call ' the tiers ‘. There are several types of lenders and you have to know the size and quality of your transaction and who is best matched to finance it. Working with an expert in the area will of course help! We're reminded of one of our mentors who once said ' tuition is very expensive in the school of experience ‘, and when it comes down to a strategic financing decision the cost of a bad experience can be expensive in many ways.

Why do businesses gravitate towards asset finance solutions? The answer is painfully simple - it's a challenging financing environment for companies searching for SME COMMERCIAL FINANCE. Once owners and finance mgrs pick up on the fact that access to ABL provides liquidity and often makes a firm more financially competitive it's easy to see why that road is one that is better travelled.

Some confusion around ' ABL ' is that many business folks consider it as only an equipment financing solution - however in our context it’s a business credit line that finances all your current and fixed assets - typically A/R, inventory, and equipment. Like bank credit lines it's a ' senior facility ', and provides aggressive financing on those assets.

The uniqueness of this type of business credit line is that those assets named above are all financed under one revolving facility. The best ' deliverable ' for ABL is its ability to allow you to borrow aggressively on the real assets in your business, based on their ' real values '. Bottom line = higher borrowing margins!

So who's using, and / or checking our ABL finance? Its companies that can access any or enough bank financing, and for firms that can’t meet ratio, covenant, and personal guarantee requirements typically mandated by the bank.

Bottom line?

Investigate ABL business credit lines as a viable working capital option used by thousands of companies like your - including your competitors by the way. Opting for this type of solution will give you overall liquidity and cash flow that helps your business grow and succeed.


In summary, investigate ABL as a viable working capital option - work with an expert in the area, and you will find that if you opt for this financing solution your liquidity and overall cash flow should improve significantly ! Seek out and speak to a trusted, credible and experienced Canadian business financing advisor to explore ‘generic ‘business credit line solutions.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Business Finance Solutions In Canada : The Rise Of Asset Based Lending & Non Bank Lenders

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Looking For A Non Bank Business Financing Solution ?

OVERVIEW – Information on non bank lenders in Canada . Why is Asset Based Financing The Fastest Growing Business Finance Solution ?

Asset based financing via non bank lenders is one of the most popular and fast growing business finance options in Canada. But why are these new paradigm lenders so popular with increased presence and visibility in all aspects of raising capital and cash flow today? We think we know exactly why! Let's dig in!

One challenge though is that this type of finance term, i.e. ' ABL ' ( asset based lending ) is a bit of a catch all term when it is first heard by many business owners and financial managers . There are in fact a very distinct number of solutions within the term ' asset based finance;

These solutions include:

Asset based operating lines of credit

Factoring / AR finance

Inventory Loans

Sale Leasebacks

Bridge loans

SR&ED Tax Credit loans

Acquisition / merger financing

We think you can see the basics thought - it's borrowing power for cash flow and working capital secured by some or all of your business assets. Unlike Canadian chartered banks these firms are more often than not commercial finance companies who operate for a profit, and, unlike our banks, are not regulated by the government. That type of regulation often limits borrowing!!

So why consider this type of solution? The most common reason is your firm’s inability to get some of all of the credit from those traditional capital sources. In some cases your firm might be in dire straits, and is in the process of exiting the bank. (At their request!)

It is very safe to say that non bank lenders take more risk, provide more capital, and come with a higher cost of borrowing. For that reason they are no focused so much on loan covenants, balance sheet ratios, etc. If your firm is still a start up or early stage company you're still often a solid candidate for financing. Hint: Sales revenues help!

How does one access alternative finance solutions. That sometime is a challenge in and of itself, as the players are small, large, U.S. owned. Canadian owned, and occasionally geographically focused. All have different rates, structures, solutions, and programs. In many cases enlisting the help of a Canadian business financing advisor makes total sense to save time and hone in on the right solution.

When you do in fact focus in on the solution that makes sense for your firm benefits will often include flexibility and quicker access to capital. In a handful of scenarios it's not uncommon for an alternative financier to also work within your current bank facility, although that's not the norm.

The bottom line? There is a whole new ' ball game ' when it comes to commercial business financing via non bank lenders. If you're looking for lines of credit, cash flow and working capital solutions, or very specialized finance needs seek out and speak to a trusted, credible and experienced Canadian business financing advisor who can assist you with asset based financing business finance needs.




Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com



7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Business Financing Via Invoice Cash Solutions : Looking For The Best A/R Finance Company

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Looking To Put Cash Flow From Sales On Autopilot ? Here's How !

OVERVIEW – Information on business financing solutions in Canada. Invoice cash funding is all about choosing the right solution via an AR Finance Company

Business financing for many firms in the SME sector involves the necessity to turn receivables into liquidity for the company, in effect we're talking about ' invoice cash '. That term is synonymous with cash flow challenges that hit many firms all the time. How then does the use of an AR finance company assist in meeting that challenge?

Sooner, rather than later is the need for business owners who want cash flow to support their company requirements. In many cases certain industries demand a lot more cash for companies that participate in the sector. That might mean more focus on capital assets, or even research into new products and services.

What happens though when you can't get the financing you need from traditional banks / business oriented credit unions, etc? That's where an AR Finance company comes in.
Your ability to quickly and efficiently set up a receivable discounting facility allows you to immediate remove the problem of waiting 30, 60 or even 90 days for receipt of client funds for your goods and services.

To receive full funding for your receivables from a Canadian charted bank there is of course an extensive loan and business application, with a lot of emphasis spent on historical cash flow analysis, balance sheet analysis, income statement and operating ratios, etc! Invoice cash services eliminate 90-95% of that type of waiting and negotiation.

So why then does ' factoring ‘, the more technical name for invoice cash work and in fact showing more popularity every day. The answer is simple, an immediate flow of funds based on your sales revenues. That becomes most of the solution to what the pros call your ' working capital cycle '. That cycle, simply speaking, is the amount of time it takes a dollar to journey through your company and makes it back onto the balance sheet as cash.

When you finance through an invoice cashing - also called invoice discounting facility, you are not borrowing funds on a long term basis. Your balance sheet does not accumulate debt; you are simply liquidating current assets in a more efficient manner.

Is there any one type of facility in the area of ' invoice cash ' that works better than others? We're glad you asked!

We constantly recommend Confidential Receivable Financing, it's the ' non notification ' part of this solution, allowing you to bill and collect your own accounts, bank your own funds, and choose how much financing you need on an ongoing basis. It's classic ' pay for what you use ' financing when you're working with the right partner.

A/R Finance is not always the ' only ' way to fund cash flow needs. Other strategies might include:

Working capital short term/ long term loans

Sale leaseback strategies

Inventory finance

Tax credit finance ( sr&ed refunds are financeable)

Longer term solutions of course involve scenarios such as new equity.

So let's recap: Your business requires additional cash flow. You either have facilities in place and they aren't working, or you are self financing and need cash flow to pay suppliers, employees, etc. Seek out and speak to a trusted, credible and experienced Canadian business financing expert who can deliver on invoice cash for your firms need.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :
http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8


Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '


ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Asset Finance Requirements ? Equipment Loans & Leasing 101!

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Asset Finance Requirements - Different Financing That Really Is.. Different !

Information on equipment loans in Canada. Asset finance strategies such as leasing, bridge loans and sales leasebacks enhance cash flow and allow business to acquire assets for growth, profit.. and survival

Asset finance, via leasing and equipment loans is enjoying ' boom times' in Canada. That translates into key benefits for Canadian business owners and financial mgrs. Does your firm fully benefit from the power of equipt? leasing in your overall finance strategy? Let's dig in.

While the economists continue to debate the overall state of the economy it's no secret that for most businesses in Canada business financing is still a challenge. In some cases certain industries are being hammered by external factors that strongly affect their overall success.

That is why equipment loans are so attractive and sought by companies looking to add to, replace, or ' refresh ' their asset that often are key in growing sales and profits.

Those benefits we talked about haven't really changed much over the years - easier access to credit, competitive rates, the ability to match cash flow with benefits obtained from the assets, and on it goes.

As mentioned above it's also important to understand that almost any asset can be financed, and that also includes used assets for firms that feel the useful asset life combined with an attractive price makes used assets a strong consideration at times. In many cases the strategy of a loan or a sale leaseback for equipment simply replaces the paperwork and accounting associated with a finance lease. At the end of the day the asset is still being financed!

In some cases many larger mfr's also offer ' in house' financing via captive finance companies they set up to help customers acquire their product. The technology industry is a good example of these types of programs.

The breadth of assets that can be financed, from a dollar perspective is simply speaking tremendous. The industry has segmented itself into a handful of key categories from ' micro ' deals for assets that might costs just a few thousand dollars to ' large ticket ' deals that finance assets/equipment/technology in the millions. Even start ups have access to finance based on a minimum of credit history when owners can prove they have the cash flow to repay loans / leases.

Frankly we can't think of any industry that doesn't benefit or use equipment loans and lease finance as part of its ability to acquire assets.

If you're looking for the right financing for assets you need in your business seek out and speak to a trusted, credible and experienced Canadian business Financing Advisor with a track record of success
who can help you fulfill your overall business needs while minimizing cash outflow.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653


Email = sprokop@7parkavenuefinancial.com


'

Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

SRED Tax Credit Loans & The Govt Business Loan In Canada

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Which Of These Two Govt Programs Provides Great Business Financing Possibilities ? Answer : Both Of Them

OVERVIEW – Information on the financing benefits of the Govt Business Loan and bridge finance via SRED Tax Credit Loans

Govt business loan funding in Canada as well as the ability to access SRED tax credit loans are two excellent ways to help fund your company. While many clients we speak to are looking for the proverbial ' grant ' the concept of ' free money ' isn't really available- instead the alternatives we have mentioned are great ways to raise capital/cash flow. Let's dig in.

For companies seeking SME COMMERCIAL FINANCE solutions these programs stand head and shoulders above - they fund over 12 Billion dollars each year when we take into account both programs.

While many may consider anything to do with govt as ' overwhelming ' the reality is that both programs are straight forward. For the Govt Small Business Loan, aka the ' SBL ' it's available to all new or established firms with revenues under five Million dollars. We note also that the program does not apply to publicly listed companies.

How can you qualify for the program, and, more importantly, do you qualify? Customers need to review the classes of assets that can be financed. The true power of the program is that the rates are only 3% over prime, currently in the 5% range. Terms of repayment are 5-10 years, and, are you ready; a full personal guarantee of payment is not required!

How do firms such as yours, or your competitors! use this type of loan financing .Typically these programs are used by companies to acquire assets, improve their business, purchase or develop software, and even in some cases buy real estate.

We note that even business real estate can be financed, with limited guarantees and great rates and terms.

If business principals feel they are adequately prepared to source out this programs financing power we strongly recommend that they begin this process. However, not everyone has the time, financial skills or acumen, and the ability or comfort level to complete this financing.

Those people should seek out the aid of a trusted advisor and business financing expert in order to maximize their participation in the program.

Still looking for that ' free money '? Does it exist? Again, not really. But would you like to receive a check from the government for any processes, research or innovation that your firm has developed? If so you want to maximize your participation in the governments SR ED tax credit program.

Looking for a faster option for your SR ED claim? Once your firm or your SR&ED consultant has filed and prepared the claim your refund can be financed, generating immediate cash flow via a bridge loan. Claims that are financed are structured as bridge loans - no monthly payments are made for the period of the loan, and typical loan to values are 70% of your claim.

If you're looking to explore the finance possibilities around the Cdn govt small business loan or SR&ED tax credit financing seek out and speak to a trusted credible and experienced Canadian business financing advisor who can assist you with cash flow & capital solutions that make sense.


Stan Prokop - founder of 7 Park Avenue Financial –
Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com


7 Park Avenue Financial

South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


'

Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop

Working Capital Financing In Canada - Exploring Cash Flow Factoring Solutions

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Does Your Cash Flow Need Have An Identity Crisis ? Here’s One Solution !

OVERVIEW – Information on factoring for cash flow in Canada . Working capital financing is a ' must understand ' for owners and financial mgrs seeking to grow and properly finance their businesses.

Cash flow is almost always the focus of business owners and financial managers. Most realize it turns about to be a full time job! It's relevant if only for the fact that working capital financing is all about growth in sales and hopefully profits. One solution, among several available, is 'factoring'.

The 2008-2009 world economic crisis drastically affected business liquidity. Every financial institution in Canada, i.e. Banks, trust companies, life insurance companies, third party independent finance companies, etc all had liquidity issues and concerns, and these were the lenders!

Larger companies can look at equity financing, long term permanent working capital, and other esoteric solutions the ' big boys ' use.

But what about SME COMMERCIAL FINANCE needs? Start up, smaller and yes even medium sized firms have to ' scramble ' to fill the void that top experts acknowledge exists in the Canadian business financing arena.

So why factoring as a cash flow financing vehicle. Yes, it will always have a higher cost, but... it's available, and it works. Certain solutions such as CONFIDENTIAL RECEIVABLE FACTORING even mirror traditional bank lines - i.e. you can bill and collect and manage your own A/R without notification to any other firm, i.e. your customers.

What then are any challenges around factoring receivables? Although it's historically been around for almost forever it's incredibly misunderstood. Many players aren’t Canadian, (which doesn't necessarily have to be a concern) but the real truth is the way these firms operate and deliver on your financing. Also, prices and fees vary

But whatever challenges come from factoring A/R it's safe to say that the ability to turn sales into ' immediate cash ' is the greatest selling point to clients we talk to.

Things to both understand and consider when looking a factoring working capital financing include:

The requirement to finance all your A/R & Sales - Spoiler alert - you don't have to!

Rates/cost/fees -

Security arrangements - in all cases the key collateral is of course your A/R

Size of facility and quality of your customer base

Amount of financing extended against invoices - typically it should be at least 85-90%

Factor firms have very levels of involvement in your business when you have such a facility. The factor financing can have a strong level of daily ' intrusion' into the Canadian firms business - the factor might insist on delivering invoices to your customer, notifying them of the financing arrangement, and yes, you guessed it, even calling the customer and collecting the receivable. Naturally in a perfect worked most firms would rather perform these functions themselves as part of the overall 'customer relationship '. That's why we don't recommend that solution to our clients, instead preferring CONFIDENTIAL A/R FINANCE.

If you're focused on winning the working capital financing game seek out and speak to a trusted, credible and experienced Canadian business financing advisor who is focused on the cash flow and factoring solution you need to grow and survive.


Stan Prokop - founder of 7 Park Avenue Financial –

Originating business financing for Canadian companies , specializing in working capital, cash flow, asset based financing . In business 10 years - Completed in excess of 100 Million $$ of financing for Canadian corporations . Core competancies include receivables financing, asset based lending, working capital, equipment finance, franchise finance and tax credit financing. Info & Contact Details :

http://www.7parkavenuefinancial.com

7 Park Avenue Financial
South Sheridan Executive Centre
2910 South Sheridan Way
Suite 301
Oakville, Ontario
L6J 7J8

Direct Line = 416 319 5769

Office = 905 829 2653

Email = sprokop@7parkavenuefinancial.com


' Canadian Business Financing with the intelligent use of experience '

ABOUT THE AUTHOR
Stan has had a successful career with some of the world’s largest and most successful corporations.
Prior to founding 7 Park Avenue Financial in 2004 his employers over the last 25 years were, ASHLAND OIL, ( 1977-1980) DIGITAL EQUIPMENT CORPORATION, ( 1980-1990) ) CABLE & WIRELESS PLC,( 1991 -1993) ) AND HEWLETT PACKARD ( 1994-2004 ) He is an expert in Canadian Business Financing.

Stan has over 40 years of business and finance executive experience. He has been recognized as a credit/financial executive for three of the largest technology companies in the world; Hewlett-Packard, Digital Equipment and Cable & Wireless. Stan has had in depth, hands on experience in assessing and evaluating thousands of companies that are seeking financing and expansion. He has been instrumental in helping many companies progress through every phase of financing, mergers & acquisitions, sales and marketing and human resources. Stan has worked with startups and public corporations and has many times established the financial wherewithal of organizations before approving millions of dollars of financing facilities and instruments on behalf of his employers.


Stan Prokop